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THE ENTREPRENEURIAL AND REPLICATION FUNCTION OF NEW FIRM FORMATION

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Abstract:

ABSTRACT

New firm formation is commonly seen as a representation of the entrepreneurial capacity of a region. However, there is also a group of new firms that is based on the replication of existing business practices rather than on the entrepreneurial introduction of new practices. Both groups of founding types have a role in the explanation of regional economic development. This paper displays the spatial and industry patterns of two types of new firm formation representing each function: individual foundings and organisational foundings.

Keywords: New firm formation; founding rates; spatial patterns; the Netherlands

Document Type: Research Article

DOI: http://dx.doi.org/10.1111/j.1467-9663.2007.00432.x

Affiliations: Urban and Regional Studies Institute, Faculty of Spatial Sciences, Groningen University, PO Box 800, 9700 AV Groningen, the Netherlands., Email: sierdjan.koster@rug.nl

Publication date: December 1, 2007

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